On December 24, the IRS released its Exempt Organization Newsletter, Issue Number 2013-26. Topics include the following:
- IRS issues new interim guidance for supporting organizations and grantors
- New guidance provides transition relief for employee health insurance expenses
- IRS offers tips for year-end giving
- Year-end updates on retirement plans matters for exempt organizations
- 2014 PTIN renewal period underway for tax professionals
- Happy New Year!
1. IRS issues new interim guidance for supporting organizations and grantors
Notice 2014-4 provides further interim guidance for § 509(a)(3) supporting organizations and their grantors about the application of certain requirements enacted as part of the Pension Protection Act of 2006. The notice provides transitional rules for Type III supporting organizations that want to qualify as “functionally integrated” because they support governmental entities.
The notice also provides additional interim guidance for private foundations and sponsoring organizations that maintain donor-advised funds on the procedures to be followed in determining whether a potential grantee is a Type I, Type II or functionally integrated Type III supporting organization.
2. New guidance provides transition relief for employee health insurance expenses
Notice 2014-06 provides guidance on section 45R of the Internal Revenue Code for certain small employers that cannot offer a qualified health plan through a Small Business Health Options Program (SHOP) Exchange because the employer’s principal business address is in a county in Washington or Wisconsin in which a QHP through a SHOP Exchange will not be available for 2014. Notice 2014-06 will be published in Internal Revenue Bulletin 2014-2 on Jan. 6.
3. IRS offers tips for year-end giving
Individuals and businesses making contributions to charity should keep in mind several important tax law provisions that have taken effect in recent years.
4. Year-end updates on retirement plans matters for exempt organizations
Charitable contributions of up to $100,000 per year by IRA owners, age 70½ or over, directly transferred to an eligible charity before December 31 are tax-free.
5. 2014 PTIN renewal period underway for tax professionals
The IRS reminds professional tax return preparers to renew their Preparer Tax Identification Numbers (PTINs) if they plan to prepare returns in 2014. Current PTINs expire Dec. 31, 2013.
6. Happy New Year!
EO wishes everyone a happy, safe and productive 2014.